§ 16-404.  Disposition: Inventory, Methods, Terms, and Approvals. 37
   (1)   Inventory.
      (a)   Each Agency shall maintain an up-to-date inventory of surplus properties owned by the Agency and shall make such inventory publicly accessible on the internet and at its offices during normal business hours. The inventory may be depicted a map of such properties along with other relevant information about land use conditions, such as vacancy and tax delinquency rates. An inventory for the surplus properties of all the Agencies may be maintained collectively by one of the Agencies.
   (2)   Methods.
      (a)   An individual or entity who seeks to obtain a surplus property must submit an application in such form as is specified by the Agency. Properties may only be conveyed to a Qualified Applicant who has submitted a timely and complete application. An applicant is qualified if:
         (.1)   the applicant has no City tax or water delinquencies, or other City delinquencies, or is in a current payment agreement with respect to any such delinquencies;
         (.2)   no properties owned by the applicant have outstanding violations under The Philadelphia Code. A violation shall not be considered outstanding if there is an agreement with the City to come into compliance; and
         (.3)   such other threshold criteria as may be established in the Disposition Policy is satisfied.
      (b)   All surplus properties shall be disposed of by an Agency pursuant to either a competitive process, as set forth in subsection 16-404(2)(c), or pursuant to the requirements of subsection 16-404(2)(d).
      (c)   Disposition Pursuant to Competitive Process. Except as authorized under subsection 16-404(2)(d), an Agency shall dispose of a surplus property pursuant to a process that includes the following:
         (.1)   The Agency shall advertise the availability of a property. Such advertisement shall specify a period of time, not less than 30 days, during which applicants may submit an application for the property. The advertisement shall include the weighted criteria set forth in this subsection.
         (.2)   Within 120 days of the close of the submission period, the Agency shall evaluate applications of qualified applicants for selection based upon the following weighted criteria: thirty percent (30%) for economic opportunity and inclusion; fifteen percent (15%) for public purpose - social impact; twenty percent (20%) for development team experience and capacity; twenty percent (20%) for financial feasibility; ten percent (10%) for project design; and five percent (5%) for offer price. The Agency may select an applicant based upon such criteria to the fullest extent permitted by law, or it may choose not to select any applicant.
         (.3)   No later than 120 days of the close of the submission period, the Agency shall provide all applicants with either a denial letter or, if an applicant is selected for disposition, a purchase agreement that includes a price valid for no less than one year from the time of delivery of an executed agreement by the applicant (subject to extension by the Agency). Such purchase agreement shall include such restrictions in connection with the purchase agreement and transfer of title as deemed appropriate by the Agency and as required by the Disposition Policy and this Chapter.
      (d)   Disposition without Competitive Process.
         (.1)   An Agency may dispose of surplus properties to a qualified applicant without following the process set forth in subsection 16-404(2)(c) in any one of the following circumstances: 38
            (.a)   An applicant seeks property for use as a side or rear yard, provided such property has no permanent structures, such property is not more than 1,440 square feet, such property is comprised of no more than two adjacent parcels, and the applicant owns and occupies adjacent property as a primary residence.
            (.b)   An applicant seeks property for use as a community garden, open space or recreational area, provided such applicant is organized as a non-profit organization under Pennsylvania Law.
            (.c)   An applicant seeks property for use as expansion of an existing business in the near vicinity of the property.
            (.d)   A 39 significant portion of the proposed development site is already owned by such applicant and the surplus property will be developed as part of the development project.
            (.e)   At least fifty-one percent (51%) of the development qualifies as either affordable or workforce housing, under local or federal guidelines, or mixed-income housing, pursuant to subsection 14-702(7) of The Philadelphia Code.
            (.f)   The development is a community benefiting use, such as, without limitation, a daycare, healthcare or senior center, that is designed to benefit low-income and moderate-income households, all as further defined in the Disposition Policy.
         (.2)   Applications for non-competitive dispositions shall be evaluated for financial and operational capacity to complete the proposed project, and other considerations, in accordance with the Disposition Policy.
         (.3)   Within 120 days of receiving a completed application for the disposition of a surplus property pursuant to this subsection 16-404(2)(d), the Agency shall advise the applicant in writing whether the Agency will offer the property to the applicant.
         (.4)   If the applicant's proposal been deemed suitable to recommend for approval, the Agency shall provide the applicant with a purchase agreement that includes a valid for no less than one year (subject to extension by the Agency) from the time of delivery of an executed agreement by the applicant. Such purchase agreement shall include such restrictions in connection with the purchase agreement and transfer of title as deemed appropriate by the Agency and as required by the Disposition Policy and this Chapter.
   (3)   Terms.
      (a)   For properties sold for fair market value, the fair market value of such property shall be determined by an independent appraisal or in-house opinion of value by a licensed appraiser. The applicant may submit information that is relevant to the value of such property for consideration.
      (b)   An Agency may dispose of a surplus property to an applicant at a price that is nominal or less than fair market value, if either:
         (.1)   The Agency is disposing of the property under the process set forth in subsection 16-404(2)(c); or
         (.2)   The Agency determines that the proposed use of the property falls into a category set forth in the Disposition Policy for which such nominal or less than fair market value disposition is authorized.
      (c)   An Agency may develop policies to permit, in specified circumstances, alternative forms of payment by applicants who cannot afford immediate payment in full.
      (d)   The Disposition Policy may authorize exchanges of real property in lieu of payment.
      (e)   An Agency shall require that terms and conditions be incorporated into the agreement and the deed conveying title to surplus properties approved for disposition appropriate to the disposition and consistent with the Disposition Policy, and including, at a minimum, to the extent feasible in the context of the particular transaction:
         (.1)   an irrevocable power of attorney, coupled with an interest, appointing the grantor or its designee as true and lawful attorney-in-fact for the grantee to enter into and take possession of such property, with other necessary provisions, in the event of a failure by the grantee to comply with any term or condition established in connection with transfer of title; and
         (.2)   a requirement that failure of compliance with any term or condition established in connection with transfer of title will cause title to the property to revert to the ownership of the City of Philadelphia, the Philadelphia Redevelopment Authority or the Philadelphia Land Bank, automatically, without any conveyance thereof being required, upon notice that such failure exists and such failure is not remedied by the expiration of any applicable cure period.
      (f)   An Agency shall require an agreement for all dispositions of surplus properties.
         (.1)   For dispositions by the Redevelopment Authority, the agreement shall be a redevelopment contract in accordance with the Urban Redevelopment Law and Chapter 16-600.
         (.2)   For dispositions by any other Agency, the agreement shall include the provisions required by subsections 16-601(1)(a) 40 through 16-601 (1)(e), except that all references in such provisions to the Redevelopment Authority shall be considered as references to the Agency.
         (.3)   An Agency may impose any other conditions of sale including, without limitation, deed restrictions, restrictive covenants, and mortgages. The Agency shall monitor compliance with such conditions, including by requiring periodic reporting by transferees.
   (4)   Approvals.
      (a)   An Agency shall not dispose of, or lease for more than one year, a surplus property, without approval of the disposition by resolution of the Board of Directors of the Agency, and approval by a resolution or ordinance of City Council. A summary of the lease or disposition terms shall be provided for inclusion with the Council approval resolution or ordinance. Such approvals may not be given until at least ten (10) days after public notice has been provided as required by subsection (b).
      (b)   An Agency shall provide public notice of proposed dispositions, and leases for more than one year, as early as practicable. Public notice shall include a conspicuous posting on property proposed for disposition or lease, and notice to those registered community organizations as defined in subsection 14-303(11A) whose registered geographic area of concern contains a property proposed for disposition. Any individual or organization may submit comment in writing regarding a proposed disposition or lease to the Agency with title to the property. The Agency shall transmit, or otherwise make available, all such comments to its Board.
      (c)   Nothing in this Chapter shall obligate an Agency to dispose of a surplus property to an applicant for such property, including the highest scoring applicant in a competitive process.
      (d)   A reference to the Vacant Property Review Committee in connection with methods set forth in a deed or agreement to satisfy deed terms and conditions existing at the time of adoption of this Section shall be construed as a reference to the Commissioner of Public Property.

 

Notes

37
   Repealed and replaced, Bill No. 190606-AA (approved November 12, 2019). See note 32 for effective date provisions.
38
   Enrolled bill did not designate this subsection as (.1); designation added and following subsections renumbered as (.a) through (.f) at the discretion of the Code editor.
39
   Enrolled bill read "At".
40
   Enrolled bill read "Section 16-601(a)".